Page 25 - ARUBA TODAY

BUSINESS Tuesday 4 July 2017
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Economy is strong, but auto sales drop in 1st half of year

pected to plunge anytime while Ford said its sales de-
soon. Plus, buyers are still clined 5 percent. GM was
loading out trucks and SUVs off 4.8 percent and Korean
with high-priced options, automaker Hyundai post-
and that’s likely to boost ed a hefty 19.3 percent
earnings, at least in Detroit. decrease. Nissan, Toyota
Sales are falling largely and Honda each reported
because people who de- small increases on Mon-
layed car and truck pur- day, but they weren’t large
chases in the years since enough to offset declines in
the Great Recession have Detroit. Volkswagen brand
bought new ones, says Jes- sales rose 15 percent over
sica Caldwell, executive depressed numbers from
director of analysis for Ed- last June.
munds.com. “We’re kind Autotrader senior analyst
of at the point where we Michelle Krebs says the
don’t have a boost from small first-half dip is not an
that,” she says. indication of broader eco-
Also, auto companies nomic troubles. She doesn’t
are cutting lease deals as expect a big recovery in
used-car values fall, cur- the second half of the year,
tailing another incentive but also doesn’t see a huge
to buy. And people with decline, predicting full-year
Chevrolet cars sit on the lot of a dealer in Pittsburgh. On Monday, July 3, 2017, automakers lower credit scores are feel- sales from between 16.8
released monthly sales reports. ing the pinch from lenders million to 17.3 million. That’s
(AP Photo/Gene J. Puskar) tightening standards a bit, still below last year’s record
By TOM KRISHER Even so, U.S. auto sales fell fell 2.1 percent, the first sending many into the used of 17.55 million.
AP Auto Writer 3 percent last month. such decrease since the fi- car market, Caldwell says. “We think the second half
DETROIT (AP) — Unemploy- It was the sixth straight nancial crisis in 2009. In June, Ford, General could be a little bit stronger
ment is down, consumer monthly decline as sales But auto executives and Motors, Fiat Chrysler and than the first half was,” says
confidence is up, and gas dropped off last year’s re- industry analysts say it’s no Hyundai all reported sales Krebs, who expects 2016
prices and interest rates are cord pace. For the first six cause for panic. Sales are drops. Fiat Chrysler sales still to be the fifth-best year
still low. months, car and truck sales still strong and aren’t ex- were down 7.4 percent, on record. q

Tesla: 1st Model 3 to be built Friday, sales start July 28

NEW YORK (AP) — The first 50,000 Model S sedan and
Tesla Model 3 electric car Model X SUV deliveries in
for the masses should come the first half, as much as a
off the assembly line on Fri- 71 percent increase over a
day with the first deliveries year ago.
in late July, the company’s While second-quarter deliv-
CEO says. eries rose 53 percent from
CEO Elon Musk, in sever- a year ago, they still were
al Twitter messages early about 12 percent below
Monday, says the new car first-quarter deliveries. Tes-
passed all government la said in a statement that
regulatory requirements for second-quarter production
production to begin two was hampered by a severe
weeks ahead of schedule. shortfall of battery packs.
The company plans to hold Production averaged 40
a party to hand over the percent less than demand
first 30 Model 3s to custom- until early June, the com-
ers on July 28, Musk wrote in pany said.
a tweet. Tesla said that as long as
The Model 3 is to start global economic condi-
around $35,000 and with tions don’t worsen consid-
a $7,500 federal electric erably, it is confident that
car tax credit, could cost second-half Model S and
$27,500. Tesla says the five- Tesla Motors unveils the new lower-priced Model 3 sedan at the Tesla Motors design studio in Model X deliveries are likely
seat car will be able to go Hawthorne, Calif. Electric car maker Tesla said on Monday, July 3, 2017, that its Model 3 car will to exceed deliveries in the
215 miles (346 kilometers) go on sale on Friday. first half.
on a single charge and (AP Photo/Justin Pritchard) Musk’s tweets about the
will be sporty, accelerating and more than 1,500 in ous estimates. Musk earlier vehicles in the second Model 3 appear to erase
from zero to 60 miles per September. “Looks like we had said Tesla would make quarter, bringing first-half doubts that Tesla would be
hour in under six seconds. can reach 20,000 Model 3 10,000 Model 3s per week deliveries to about 47,100. able to meet deadlines for
Musk tweeted that the cars per month in Decem- by December. That’s at the low end of mass producing the cars,
company expects to pro- ber,” he wrote. Tesla also said Monday that the company’s prediction which is key to the compa-
duce 100 cars in August That figure is less than previ- it delivered about 22,000 earlier this year of 47,000 to ny making money. q